Page 28 - RBS GRG F Case Study

that "some elements of this inappropriate treatment of
customers should also be considered systematic." (23)

Between 2005 and 2013 RBS put 16,000 business

customers into its GRG division, telling many it was there

to help turn their fortunes around.

However, the FCA commented that the bank had instead

systematically put its interests ahead of its customers.

But, despite these serious failings and inappropriate
behaviour identified by the FCA, the regulator has limited

powers to punish RBS as it does not regulate the practice

of restructuring struggling businesses.

RBS responded by announcing that it would refund

complex management fees worth £400 million to small

and medium-sized enterprises (SMEs) that went through

its restructuring process.

McEwan said the bank is "very sorry" for what happened

to businesses that went through RBS' restructuring arm

between 2008 and 2013, and insisted that: "The culture,

structure and way RBS operates today is fundamentally

different from the period under review."

There are however, many questions for the bank and

regulator to answer such as:

“• Why has RBS so vehemently denied the allegations of
the Tomlinson Report when the bank was in possession

of the evidence at the time?
• Why were RBS’ ‘independent’ reviewers, Clifford Chance,